The Nasdaq (COMP) gained 1 point, or less than 0.1%, to 3,075. The tech-heavy index was supported by shares of Green Mountain Coffee Roasters (GMCR), which surged on news of a deal with Starbucks (SBUX, Fortune 500).

Wednesday's housing report caught many investors by surprise and raised concerns about the glut of foreclosures weighing on the market, said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

"There was some optimism built into existing home sales," Ablin said. "But the actual number left investors a little disappointed."

Ablin added that trading volumes have been low this month and that "the market is more or less taking a breather." In addition, he said seasonal factors may be behind the listless moves.

"We're having unseasonably warm weather in New York and Chicago today, and I think some traders may be swapping their clipboards for golf clubs," he joked.

Overall, stocks have been supported this year by rising hopes for the U.S. economy and easing concerns about the debt crisis in Europe. But given the strength of the recent rally, analysts say a period of choppy trading is to be expected.

"The market has had an explosive run, so it's not surprising to see some volatility," said Doug Cote, chief market strategist at ING Investment Management.

Cote called the volatility "healthy" and said the market is still poised to go higher this year. He said stocks remain undervalued and that the rally could be sustained by continued improvement in economic data.

"The preponderance of economic numbers have been beating expectations," Cote said, pointing to reports on manufacturing, consumer spending and employment.

Lions Gate Entertainment (LGF)continuedto draw attention as investors bet the company will benefit from the opening of "The Hunger Games" movie this Friday.

General Mills (GIS, Fortune 500) reported sales of $4.1 billion, and earnings per share of 55 cents on Wednesday morning. The food producer cited its international acquisition of Yoplait as a source of growth, but noted that its margins were squeezed by higher input prices.

Currencies and commodities: The dollar lost ground against the euro, but gained against the British pound and the Japanese yen.

Oil for May delivery rose $1.20 to settle at $107.27 a barrel.

Gold futures for April delivery rose $3.30 to end at $1,650.30 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing yields down to 2.34% from 2.37% late Tuesday.